December Live Cattle
In today’s action the December live Cattle market floundered near the the lower end of the trading range of the last few sessions finishing at 120.575. The contract held up at the 119.450 speed-line support and managed to hold above the critical 119.175 level. I have been up until now calling for another impulsive wave up to the 130-133 target to complete an extended fifth wave. This still remains a possibility. However, I am leaving the door open for that last high of 127.875 to be the terminating point. Fibonacci rules for extension measurements suggest a target projection using an .618 of the distance traveled for the first 3 waves projected off the high of the 3rd. Using a potential 3rd wave high of 119.175 would produce 126.800 as a likely target. From today’s low if a non-impulsive rally were to develop I would consider this enough evidence to suggest a short position. First overhead level of contention comes in at +/-123.150. A violation should reach for +/-124.500. Near term support comes in at 119.750. It gets petty spacey below here. Extended downside target zone rests at 116-115.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my technical approach. Employing my expert skill set I’d be pleased to offer a free customized outlook for a product in your specific field.
Please join me next Wednesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.